Freeholder Liquidated - Can't Sell Apartment

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    Freeholder Liquidated - Can't Sell Apartment

    Any advice on the following is greatly appreciated. I don't know where to start.

    Apartment mortgaged in 2006, in a 13 apartment block. The builder was the freeholder and managing agent, they liquidated in 2012 - and took all the management reserve fund with them. Post liquidation the commercial mortgagee to the freeholder set up a limited company (ABC Ltd) limited by shares (not by guarantee) and assigned 2 residents as directors of this limited company. They also hired a new managing agent who became the secretary of this limited company Sept 2012.

    A year later 1 of the directors/residents moved away and a new resident became the 2nd director, and on his lease he put the limited company (ABC Limited) as the managing agent and not the actual managing agent. In 2016 this the 2 directors/residents changed managing agents without any other residents knowing about it and appointed the new managing agent again as secretary on ABC ltd.

    I am now struggling to sell my apartment because the freeholder cannot be traced (and they are still showing on the Land Registry). The commercial mortgagee will not respond to me. The managing agent is an arrogant twonk and just wants £80 month for essentially supplying an insurance (certificate never received) and cleaning the windows once a month. The forecasts once again for the year suggest we will just about break even which means after 12 years, there is a grand total of £2,000 in the reserve fund. I'm currently looking into RTM.

    This set-up seems complex to me and highly illegal. What are your thoughts and how can I sell this apartment?

    Thanks a lot

    #2
    If the freeholder is a company, you can check the online records at Companies House to look for latest registered address.

    If the freeholder is a person, you can try local council tax office for his/her name in their records.

    https://www.telegraph.co.uk/money/as...-gone-missing/

    Comment


      #3
      Unfortunately, the right time to sort this out was in 2012.

      However, I don't understand how the liquidated company could take the reserve fund unless they were in breach of L&T 1987 S42.

      Also a new lease is not created during normal conveyancing, so I don't see how the freeholder could have been changed on the lease.

      Comment


        #4
        You can make enquiries at Companies House regarding the status of the freeholder company.

        It would appear that the commercial mortgagee took over the assets of the freeholder company presumably under the terms of its mortgage.

        The reserve fund and service charge monies should have been held in a bank client account and kept separate to the funds of the freeholder. You should be able to recover those monies from either the commercial mortgagee or from the liquidator if those funds were passed over to them.

        If the monies were not held properly and were misappropriated, you may have a claim against the directors of the freeholder company.

        I assume that the leaseholders/members own the new company ABC Limited. If that is the case, there seems to be no need to pursue RTM.

        The members should appoint directors to represent them and remove any current director who is not representing them. The directors can then change the managing agent if he is not acting in the best interests of the members.

        It is probably best to resolve these problems before selling.

        Comment


          #5
          This may help you :

          https://www.propertyreporter.co.uk/l...-landlord.html


          https://www.telegraph.co.uk/money/as...-gone-missing/

          Comment


            #6
            Thanks all.

            Comment

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